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Originally Posted by Mortgage Made Easy
It is still too early to tell if the other Banks are going to consider the 0.25% cut to Prime. At the moment, they are probably watching oil, CDN dollar and markets to determine if and when they may consider a change to Prime.
Typically RBC leads the pack...
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That's all well and good that they're "watching" these other factors, but the fact of the matter is that they have little or nothing to do with the setting of the prime rate. The overnight rate just dropped and made it cheaper for the banks to borrow. The central bank made this cut specifically because they were concerned about inflation and IMO the banks should do the right thing and follow suit. I absolutely agree that if the overnight rate had risen a quarter point it would've been followed by all of these institutions that same morning. There wouldn't be the deliberation that this move apparently requires.
Quote:
Originally Posted by Drummer
I heard on the 660 News business report that rates might be dropped another quarter point at the next rate announcement in March. What a complete 180 from a year ago when interest rates were sure to drop.
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I think that you meant sure to rise? But ya, a huge turnaround. Just goes to show that you can't predict these things at all!